Taiwan proposes record US$35b defence budget for 2027 as PLA’s pressure grows

The government is targeting an 18.2 per cent increase in spending, with much of the extra money needed to pay for US weapons

3 -MIN READ 3 -MIN

Some of the extra money will go towards US-made Himars rocket launcher systems. Photo: EPA

Published: 9:00pm, 20 Aug 2026 Updated: 9:03pm, 20 Aug 2026

Taiwan has unveiled a record NT$1.12 trillion (US$35 billion) defence budget for 2027, with sharp increases in spending on weapons, ammunition and military operations amid growing pressure from Beijing .

The proposed spending – the first to cross the NT$1 trillion threshold – is NT$173 billion, or 18.2 per cent, higher than this year’s allocation, according to the government budget approved by the cabinet on Thursday.

It accounts for about 28.6 per cent of the government’s proposed NT$3.93 trillion expenditure next year, meaning nearly NT$29 of every NT$100 would go towards defence and related security spending.

The increase comes amid mounting military pressure from the People’s Liberation Army and repeated calls from Washington for Taipei to spend more on its own defence.

Taiwanese leader William Lai Ching-te has pledged to raise overall defence spending to 5 per cent of gross domestic product by 2030 to strengthen the island’s deterrence.

Under the proposed budget, military investment would rise by NT$97.5 billion to NT$259.1 billion, accounting for the biggest part of the increase.

Taiwan proposes record US$35b defence budget for 2027 as PLA’s pressure grows

The government is targeting an 18.2 per cent increase in spending, with much of the extra money needed to pay for US weapons

Menu